Kenyan customer loyalty startup CashBackApp has raised a Ksh. 52 million ($475,000) pre-seed funding round to help scale its service in Kenya. CashBackApp helps fast-moving consumer goods (FMCG) companies build loyalty amongst customers by allowing them to earn cashback via M-PESA on their everyday shopping.
Using the newly acquired funding, CashBackApp will be able to demonstrate the value of the platform and then scale elsewhere in the country.
To get points and earn on CashBackApp, shoppers just need to download the app and view cashback offers loaded retailers. They then physically buy those products from participating retailers’ outlets, and obtain the receipt that proves the purchase. They can then use the app to scan the barcode on the receipt in order to claim their cashback.
CashBackApp initially launched a pilot with CleanShelf, a tier two retailer, then gradually added other retailers on its platform.
The app also enables FMCGs to deploy offers fast and affordably, helping drive sales through mobile channels largely unexplored so far by FMCGs. It also provides data and consumer insights and saves up to 50% in promotion communication and marketing costs.
CashBack. The app charges the FMCGs who load cashback offers on the app, and earns a commission for all the cashback redeemed.
The start-up hopes to eventually expand to neighbouring East African countries, then to the bigger countries like Ethiopia and Nigeria, and then to the populous North African countries like Egypt. In the meantime, however, the focus is to capture and maintain local customers in the local market in Nairobi and other parts of the country.